Here’s some more good news for the 40% of Canadians who don’t have 25% to put down on a new house.
Ottawa wants to let people borrow up to 80% of a home’s cost without needing mortgage insurance. Currently mortgage insurance is required by law if your mortgage is for 75% or more of your home’s value.
Parliament has until April 24 2007 to consider the legislation. If it passes, it could save homeowners roughly $1000 over 25 years per $100,000 borrowed.
It’s unclear, however, if mortgage insurance premiums for people with less than 20% down will rise to offset these lost fees.
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